Hungary at a glance
Hungary is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Hungary
- Kft. (Korlatolt Felelossegu Tarsasag) The most common private limited company, modelled on the German GmbH. Owners hold quotas and liability is limited. Minimum capital HUF 3 million (about EUR 7,500), managed by one or more managing directors.
- Zrt. (private company limited by shares) For larger or investor-backed businesses, capital divided into shares. Minimum capital HUF 5 million (about EUR 12,500); shares not publicly traded.
- Nyrt. (public limited company) Can list on the Budapest Stock Exchange. Minimum capital HUF 20 million (about EUR 50,000).
| Corporate tax | A flat 9% corporate income tax, the lowest headline rate in the EU and OECD. On top of it, companies pay a local business tax (HIPA) of up to 2% of net sales (set by each municipality and deductible), and larger firms a 0.3% innovation contribution, so the typical all-in burden is roughly 9% to 11%. |
|---|---|
| VAT rate | Standard VAT is 27%, the highest in the EU, with reduced rates of 18% and 5%. Small businesses under roughly HUF 18 to 20 million of annual revenue can opt into VAT exemption. |
| Minimum share capital | HUF 3 million (about EUR 7,500) for a Kft. The capital need not be deposited in a bank to incorporate, and the cash portion can be paid in later, so real upfront cash is minimal. A Zrt. requires HUF 5 million and an Nyrt. HUF 20 million. |
| Setup time | About 4 to 5 business days. Documents are filed electronically with the registry court, which issues the registration (plus a tax number and EU VAT number) typically within 1 to 3 business days; plan on 1 to 2 weeks end to end including preparation. |
| Remote setup | Partial. A Hungarian attorney (mandatory) prepares and countersigns the documents and the founder can sign by power of attorney without travelling. The friction point is the bank account, where traditional banks usually require an in-person visit, though fintech accounts can be opened online. |
| Director / residency | No residency or nationality requirement. A Kft. can be 100% foreign-owned with a non-resident sole managing director. The company must keep a registered Hungarian office, and a Hungarian attorney must countersign the filing. |
| Banking options | Traditional banks include OTP, MBH, K&H, Erste and Raiffeisen; most require the director to appear in person for identity checks. Fintech alternatives such as Wise and Revolut Business can be opened online. The share capital need not sit in the account to incorporate. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Hungary pairs the EU's lowest headline corporate tax (a flat 9%) with the EU's highest VAT (27%). The Kft. mirrors the German GmbH and is the most common entity. Personal income tax is a flat 15%. Company formation legally requires a Hungarian attorney to countersign the documents.
How to register a company in Hungary
The process is straightforward and, in Hungary, largely digital. In outline:
- Choose your company type and name. Most founders pick the Kft. (limited); we confirm the name is available.
- Verify your identity. Partial. A Hungarian attorney (mandatory) prepares and countersigns the documents and the founder can sign by power of attorney without travelling. The friction point is the bank account, where traditional banks usually require an in-person visit, though fintech accounts can be opened online.
- File the incorporation. Once documents are signed, registration usually completes in around 4-5 days.
- Open a business account and register for tax/VAT. Traditional banks include OTP, MBH, K&H, Erste and Raiffeisen; most require the director to appear in person for identity checks. Fintech alternatives such as Wise and Revolut Business can be opened online. The share capital need not sit in the account to incorporate.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
Form your Hungarian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Hungary, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Hungary
Founders from outside the EU can own and run a Hungarian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Hungary up front, so there are no surprises.
Hungary and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Hungarian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Hungary against other countries, see company formation in Europe.